Wereldhave N.v. · EURONEXT:WHA

Wereldhave — FY2013 Earnings Presentation

36 slides from Wereldhave's earnings presentation, Feb 6, 2014

  1. Slide 1: Full-year results 2013

    Full-year results 2013 Schiphol 6 February 2014

  2. Slide 2: Highlights

    Highlights Solid financial performance 2013 2012  Direct result per share €3.30 €3.91  Indirect result per share €(1.48) €(8.45)  EPRA NAV per share €64.99 €66.33  Dividend per share €3.30 €3.30  Portfolio revaluations €8.9m €(193.2)m  LTV 27.4% 43.6% Operational excellence: targets have been

  3. Slide 3: Strategy Update

    Strategy Update Vier Meren - The Netherlands 3

  4. Slide 4: Our strategic approach

    Our strategic approach On 11 February 2013 a strategy was announced based on the following phases Phase I: Derisk (2012-2013)  Exit non-core markets  Healthy balance sheet  Cost reduction Phase II: Regroup (2013-2015)  Operational excellence  Controlled development pipeline  Maximization of va

  5. Slide 5: Phase I: Derisk completed (2013)

    Phase I: Derisk completed (2013) Phase I: Derisk January: March: May: 2H 2013: - Sale portfolio US - Buy back €230m - Relocation HQ to - Pension fund NL convertibles WTC Schiphol from defined benefit to - Sale non-core defined contribution portfolio NL Jan Feb Mar Apr May Jun Jul February: April: Ju

  6. Slide 6: Phase II: Regroup (2013-2015)

    Phase II: Regroup (2013-2015) Targets Regroup phase 2013-2015 2013 results 1. Operational excellence  Average LfL rental growth of 125 bps above indexation  160 bps  ≥ 98% occupancy  98.4%  Overhead reduction to ≤ €16m in 2013 and ≤ €14m in 2014  €14.5m  Strengthen talent development ≈ In

  7. Slide 7: Key results 2013

    Key results 2013 FY 2013 FY 2012 % growth % LFL growth Total NRI core portfolio €92.9m €90.7m 2.5% 3.4% Total NRI non-core portfolio €12.0m €17.1m (29.8)% (3.3)% Total NRI UK and US €10.2m €43.2m (76.4)% n.a. Total net rental income €115.1m €151.0m (23.8)% 2.7% Occupancy (total portfolio) 96.6% 94.8

  8. Slide 8: Operational Excellence

    Operational Excellence Vier Meren - The Netherlands 8

  9. Slide 9: Core retail like-for-like rental growth

    Core retail like-for-like rental growth Performance of 160 bps above indexation: outperformance of 35 bps 4.50% Above indexation 1.6% 3.60% 3.25% 0.35% 1.25% 1.60% 2.9% 3.25% Indexation 2.0% 2.0% 2012A 2013 target Outperformance 2013A  Strong lease activity results in:  Belgium: 6.3%; 470 bps abov

  10. Slide 10: Core retail occupancy

    Core retail occupancy Performance of 98.4%: outperformance of 0.4% 0.4% 98.0% 98.0% 98.0% 98.4% 2012A 2013 target Outperformance 2013A  Strong letting performance results in:  Belgium: 99.2%  Finland: 99.4%  The Netherlands: 97.0% 10

  11. Slide 11: Overhead expenses

    Overhead expenses Reduction overhead expenses is well on track at €14.5m 22.7 1.5 16.0 14.5 14.5 2012A 2013 target Outperformance 2013A  Overhead expenses decreased from €22.7m to €14.5m, i.e. €1.5m below target of €16.0m for 2013, mainly due to:  Closing offices in US and UK: €(3.0)m  One-off re

  12. Slide 12: Country Update

    Country Update Itis - Finland 12

  13. Slide 13: Belgium

    Belgium Key parameters retail FY 2013 FY 2012 Net rental income €25.9m €23.1m Like-for-like 6.3% 4.9% Occupancy 99.2% 98.7% Valuation result +0.7% +1.6%* NIY (EPRA) 6.0% 6.0% Standing investments €381m €378m Under construction €90m €55m  Core retail like-for-like NRI +6.3%, i.e. 470 bps above index

  14. Slide 14: Finland

    Finland Key parameters retail FY 2013 FY 2012 Net rental income €23.9m €23.6m Like-for-like 5.1% 5.3% Occupancy 99.4% 98.5% Valuation result +4.0% +0.2% NIY (EPRA) 5.25% 5.5% Standing investments €482m €458m Under construction €78m €37m  Core retail like-for-like NRI +5.1%, i.e. 320 bps above index

  15. Slide 15: The Netherlands

    The Netherlands Key parameters retail FY 2013 FY 2012 Net rental income €29.8m €29.9m Like-for-like 1.0% 3.7% Occupancy 97.0% 97.1% Valuation result (4.6)% (6.4)%* NIY (EPRA) 5.9% 5.9% Standing investments €477m €491m Under construction €6m €3m  Core retail like-for-like NRI +1.0%, i.e. 140 bps bel

  16. Slide 16: Paris

    Paris Key parameters office FY 2013 FY 2012 Net rental income €9.9m €9.4m Like-for-like 4.5% 2.3% Occupancy 99.0% 99.0% Valuation result +0.6% +5.0% NIY (EPRA) 6.1% 5.9% Standing investments €177m €175m Under construction €220m €116m  Strong like-for-like NRI at +4.5% due to lease in Le Cap office

  17. Slide 17: Portfolio

    Portfolio Nivelles - Belgium 17

  18. Slide 18: Acquisition criteria

    Acquisition criteria Convenient shopping  90% of shopping needs  Top-of-mind in catchment area  Catchment area of at least 100,000 inhabitants within 10 minutes drive time  Easy accessibility  Strong national and international brands in combination with local heroes  Fully embedded food, bever

  19. Slide 19: Shopping centre Vier Meren (Hoofddorp, NL)

    Shopping centre Vier Meren (Hoofddorp, NL)  Acquired for €147.5m incl. transaction costs; completion end of January 2014  Net initial yield 5.8%  Limited impact on LTV; funding largely with proceeds of disposal Joinville office in Paris  Dominant shopping centre serving a growing catchment area

  20. Slide 20: Shopping centre Vier Meren

    Shopping centre Vier Meren  33,000 m2 retail n.l.a.  3,700 m2 office space  71% stake in parking garage for 1,037 cars  Strong destination, part of a larger 74,000 m2 inner city retail offer  Growing catchment with above average income profile  Annual footfall 6m and rising  Potential for 2,5

  21. Slide 21: Committed development pipeline

    Committed development pipeline Ghent, Belgium Helsinki (Itis), Finland  Total investment €15m  Total investment €102m  Capex to date €11m  Capex to date €78m  Expected NIY 6.25% - 6.75%  Expected NIY 7%  Prelet 80%  Prelet 85%  Completion Mid 2014  Completion Q4 2014 Genk, Belgium Issy-Les

  22. Slide 22: Financials

    Financials Genk - Belgium 22

  23. Slide 23: Income statement

    Income statement FY 2013 FY 2012 Amounts in € ‘000 Direct Indirect Direct Indirect Gross rental income 130,701 206,129 Service costs charged 23,811 30,031 Total revenues 154,512 236,160 Service costs paid -26,535 -33,494 Property expenses -12,892 -51,712 Total expenses -39,427 -85,206 Net rental inc

  24. Slide 24: Direct result per share

    Direct result per share €0.03 €(1.76) €0.05 €0.38 €0.01 €0.68 €3.91 €3.30 2012A Standing Acquisitions Disposals Interest General costs Currency/other 2013A portfolio  Direct result per share is mainly influenced by:  Lower NRI due to disposals of UK, US and NL non-core assets  Lower interest cost

  25. Slide 25: Valuation: Core and non-core portfolios

    Valuation: Core and non-core portfolios Core portfolios – In €m FY 2013 FY 2012 Revaluation EPRA NIY Belgium 381 378 0.8% 6.0% Finland 482 459 4.0% 5.3% The Netherlands 477 491 (4.6)% 5.9% Paris 187 186 0.6% 6.1% Spain 60 62 (3.9)% 6.0% Total 1,587 1,576 0.1% 5.7% Non-core portfolios – In €m Belgium

  26. Slide 26: EPRA NAV per share

    EPRA NAV per share €3.30 €(1.48) €(3.30) €0.29 €(0.17) €0.02 €66.33* €64.99 2012A Direct result Indirect result Dividend Currency & other Effect repurchase Other 2013A convertible IFRS NAV** EPRA NNNAV  31 Dec. 2012: €63.60*  31 Dec. 2012: €63.38*  31 Dec. 2013: €62.24  31 Dec. 2013: €62.12 * Ef

  27. Slide 27: Debt profile

    Debt profile Key parameters FY 2013 FY 2012 Covenants Interest bearing debt* €687m €1,282m Average cost of debt** 2.8% 2.7% Fixed vs floating debt 57% / 43% 49% / 51% LTV 27.4% 43.6% ≤60% ICR 6.6x 4.6x ≥2x Diversification debt profile Maturity profile (€m) 360 Debt 6% 19% Undrawn 282 34% 176 41% 100

  28. Slide 28: Outlook

    Outlook Kronenburg - The Netherlands 28

  29. Slide 29: Outlook

    Outlook  Targets Regroup phase 2013-2015 core retail portfolio raised / reconfirmed  Like-for-like rental target raised to 140 bps above indexation (was 125 bps)  Occupancy retail core portfolio: 98%  General costs 2014 below €14.0m  The decline in the direct result from net rental income due t

  30. Slide 30: Appendix

    Appendix Nivelles - Belgium 30

  31. Slide 31: Portfolio composition

    Portfolio composition 1% 9% 21% 14% 78% 77% Retail Offices Other Core retail Core offices Non-core 5% 8% 29% 13% 28% Pro forma including shopping centre Vier Meren 10% 79% 28% Belgium Finland France Netherlands Spain Core retail Core offices Non-core 31

  32. Slide 32: Top 10 Tenants & Top 5 Properties

    Top 10 Tenants & Top 5 Properties Rank Tenant % of rent Rank Property Sector Value Dec. % of Total 2013* 1 EDF 7.7% 1 Itis (Helsinki, FIN) Sh.centre €482m 27.0% 2 Stockmann 3.3% 2 Belle-Ile (Liège, BEL) Sh.centre €162m 9.0% 3 Hennes & Mauritz 2.9% 3 Carré Vert (Paris, FRA) Office €148m 8.0% 4 Ahold

  33. Slide 33: Occupancy

    Occupancy Occupancy Value* Core portfolio Q4 2013 Q3 2013 Q4 2012 2013FY Belgium 99.2% 99.3% 98.7% €381m 21.9% Finland 99.4% 98.8% 98.5% €482m 27.6% Netherlands 97.0% 97.0% 97.1% €477m 27.4% Total core retail 98.4% 98.2% 98.0% €1,341m 76.9% Paris 99.0% 99.0% 99.0% €187m 10.7% Spain 89.5% 90.7% 87.5%

  34. Slide 34: Lease expiry profile per sector

    Lease expiry profile per sector 1.1% 1.5% Other Core Offices Core Retail 3.7% 1.3% 1.0% 2.7% 1.7% 4.2% 0.2% 9.3% 11.4% 21.3% 9.7% 9.4% 8.3% 2.8% 2.9% 0.2% 2.6% 0.2% 4.5% 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 > 2023 Excluding indefinite contracts (5.7% of total) 34

  35. Slide 35: NAV reconciliation (IFRS – EPRA)

    NAV reconciliation (IFRS – EPRA) in € per share IFRS NAV FY 2013 62.24 Effect of conversion - Diluted NAV 62.24 Fair value derivatives (0.17) Deferred tax 3.00 Goodwill (0.08) EPRA NAV 64.99 Fair value derivatives 0.17 Fair value interest bearing debt (1.24) Deferred tax (1.80) EPRA NNNAV 62.12 35

  36. Slide 36: Contact details

    Contact details Press: Analysts:  Richard Beentjes  Jaap-Jan Fit  Richard.beentjes@wereldhave.com  Jaapjan.fit@wereldhave.com  T +31 20 702 78 33  T +31 20 702 78 43  Investor.relations@wereldhave.com  www.wereldhave.com 36

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